The smell of fear is wafting in the air today as our e-mail box is filled with individuals predicting the end of the US stock market, forever. Today’s selling was relentless and breadth was the poorest we have seen in a very long time.  

I wrote today that sometimes we have no choice but to simply endure the poor action.  Knowing this of course, does not make it any easier.

Reaching for some positives; we note that sectors that have recently provided leadership, such as oil and gold, were also in the red today a sign that money isn’t flowing anywhere. Furthermore, the breadth indicates we are getting closer to a tradable bottom. We have earnings season kicking off that may help serve as a positive catalyst in some cases and it is pretty darn gloomy our there. Needless to say, chances of some good upside trading action is increasing. 

We continue to revise our shopping list and nibble earnings winners very cautiously. TSP Members who have adhered to our caution and been sitting in cash, should continue to be patient as we await a better day.

RevShark